Labour are attacking the reduction in the top rate of tax with a banner headline saying '£100,000 win for everyone earning one million pounds'. Let's do the maths. The top rate of tax applies to earnings over £150,000 so if you earn £1,000,000 then a 5p in the pound reduction in the top rate would apply to earnings of £850,000. It is fairly easy to work out that this would give individuals a saving of £42,500 which happens to be less than half of the £100,000 claim by the Labour headline.
I don't agree with a reduction in tax for the wealthy. I do agree with Tim Farron who says "Cutting the top rate was a stupid thing to do... We should pledge to restore the 50p rate at the next election". Compare this with the Labour position. After 13 years in office they managed to apply a 50p rate for 36 days. Hardly a ringing endorsement of a higher level of taxation for the wealthy.
There is an argument that lower taxation for the rich promotes growth, in particular small business growth. There are also high profile stories of people like Gerard Depardieu leaving France because of their high level of taxation. Don't believe the scare stories. It's not millionaires but people who earn one million pounds per year (there is a significant difference) who would be affected and if they want to leave the country because of the odd £42,000 then let them. It is small change in their pockets but if they think it is important then let them go. It is morally wrong to have such social division in this country so let other countries deal with this particular dilemma.
As for the simple errors in Labour's advertising, it is a shame that their advertising is undermined by not getting a maths GCSE student to help them out.
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And what level qualification does their shadow chancellor have I wonder?
ReplyDeleteI believe that he is quite bright and does have his GCSE maths which means that he must not have been involved in this particular campaign.
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